How many notices of default can a Bambu franchisee receive within a 12-month period before facing termination for repeated noncompliance?

According to Bambu's 2025 Franchise Disclosure Document, a franchisee can receive two prior notices of default within a 12-month period. If the franchisee is in default of the Franchise Agreement again within that same 12-month period, regardless of whether the previous defaults were cured, Bambu has grounds for termination.

This means that Bambu franchisees need to be particularly diligent in addressing and correcting any issues that lead to a notice of default. Even if a franchisee successfully cures the first two defaults, a third default within the same year provides Bambu with the right to terminate the agreement. This policy underscores the importance of maintaining consistent compliance with the franchise agreement to avoid potential termination.

This type of clause is not uncommon in franchise agreements, as franchisors need to protect their brand and ensure consistent standards across all locations. However, the specific number of notices allowed and the timeframe for repeated noncompliance can vary. Prospective Bambu franchisees should carefully review the default and termination sections of the Franchise Agreement and seek legal counsel to fully understand their obligations and potential risks.